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UK Employment Rights

Statutory Redundancy Calculator

Find out exactly how much Statutory Redundancy Pay (SRP) you are legally entitled to under UK employment law if you are laid off.

Your Employment Details

Your exact age when notice ends.

Must be 2 or more to qualify.

£

Before tax and deductions. Excludes overtime.

Statutory Payout Summary

Calculated Weekly LimitCapped£700.00
Qualifying Years5
Total Statutory PayTax-free up to £30K
£3,500.00

Redundancy Rules

  • Statutory vs Contractual

    This calculator computes the strict Government minimum (Statutory). Check your employment contract, as your employer might offer an enhanced contractual redundancy package.

  • The £700 Cap

    If you earn £1,500 a week, the government formula still caps your mathematical weekly pay at £700 (Current 2024/25 limit).

  • Tax-Free Advantage

    Redundancy payments are completely exempt from Income Tax and National Insurance up to £30,000.

Save for Records

If your HR department has issued a redundancy letter, generate a PDF report here to double-check that their financial offer maps mathematically to your legal rights.

The Ultimate Guide to UK Statutory Redundancy Pay

Losing your job due to company restructuring or downsizing is incredibly stressful. However, if you are legally classed as an employee and have been with your current employer for 2 years or more, the UK Government demands that you are given financial cushioning. Our Redundancy Calculator determines the rigid minimum amount your employer MUST pay you.

How Age Impacts the Calculation

The government structures redundancy payouts across three age-brackets. The calculation "looks backwards" from the exact date your notice period ends. For every full year you worked for the company, you receive a specific multiple of your weekly pay depending on how old you were during that specific year.

  • Under 22: You get 0.5 weeks' pay for each full year.
  • Aged 22 to 40: You get 1 full week's pay for each full year.
  • Aged 41 and over: You get 1.5 weeks' pay for each full year.

For example, if you are 42 years old and have worked for a firm for 3 years: you worked year 3 when you were 41 (granting 1.5 weeks), year 2 when you were 40 (granting 1.0 week), and year 1 when you were 39 (granting 1.0 week). Your total multiple is 3.5 weeks' pay.

The "Weekly Pay Limit" Trap

The most common shock for high-earning professionals is the Statutory Cap. The government limits the maximum "weekly pay" variable to £700 (applicable from 6 April 2024 to 5 April 2025).

If you earn a gross salary of £70,000 per year, your true weekly pay is roughly £1,346. However, when HR runs the statutory equation legally demanded by the government, they will cap your variable at £700. This is why standard statutory redundancy payouts often look far smaller than individuals anticipate.

Are Redundancy Payouts Taxable?

One of the bright spots of UK redundancy law is that genuine redundancy payouts are tax-free up to £30,000. You will not have Income Tax or National Insurance deducted from this sum.

Please note: Normal pay owed to you, such as your final month's salary, paid notice period (if you are put on garden leave), and accrued but untaken holiday pay are completely separate from your redundancy payout. These normal earnings WILL be taxed identically to your standard paycheck via PAYE.